M&C Report takes a closer look at the full year results from Pret A Manger and talks to chief executive Clive Schlee about expansion opportunities, people and refurbishment
Expansion
During the year, the chain opened 19 sites in the UK, 11 shops in the USA, two in Hong Kong and four new shops in Paris, taking its total to 320. It plans to open 50 new sites during its current financial year, with opening split 50/50 between the UK and international. The majority of international openings will be in the US, with four opening in France and a few in Hong Kong.
Schlee said: “We have always managed our expansion carefully. We have made a good start in France and we will be opening four further shops in Paris this year. The Parisian shops have the highest average weekly sales of any city in the Pret world. In the USA, Pret opened two shops in our fourth city, Boston. There is every sign that as we build critical mass there that this will prove a successful market for us.”
Schlee told Bloomberg that the group would consider opening in Shanghai early next year. He said: “We have to take it carefully and take our time to learn how the Chinese market works. Pret is very steady and we’ll take it shop by shop but I’m sure we’ll have a very good business there in ten years’ time.”
In the UK, Schlee said that London continued to be very competitive in terms of sites and that rent levels in the West End were at a record high. However, he felt that regional town were starting to “loosen up” and that the chain was starting to pick up some good deals outside the capital. He said that the group was also looking at more opportunities thrown up by the decline of some high street retailers and the ability to negotiate lower rents.
He said: “I think we will look to do more in the regions over the next 12 months, with sites in St Albans, Leicester and in a number of further South East locations set to come on line.”
During the year we continued to refurbish our shops and expand them where we have the opportunity to do so. The new, lighter design and extra seats have been well received by our customers. Pret continues to evolve from being a take away concept for office workers into a more comfortable environment able to satisfy workers, shoppers and local residents, as well as tourists and people on the move.
Refurbishments
During the year the company continued to refurbish its shops and expand them where it had the opportunity to do so. It is keen to encourage more customers to eat in, rather than be seen as just a takeaway operation.
Schlee said: “The new, lighter design and extra seats have been well received by our customers. Pret continues to evolve from being a take away concept for office workers into a more comfortable environment able to satisfy workers, shoppers and local residents, as well as tourists and people on the move. The new design has enabled us to focus on the shoulder periods before and after lunch, which take in mums and pensioners. Where possible we will look to introduce this design into further locations.”
People
Pret plans to create approximately 1,000 new jobs in 2013, of which at least 500 will be in the UK.
Schlee said: “We have launched our fledgling National School Leaver Programme to encourage British school leavers to work for us. The first nine school leavers have already joined us and the scheme will be expanded in September this year.”
In 2012, Pret distributed approximately 2.5 million products to the homeless and visited and sent direct grants to 34 homeless charities. Schlee said: “Most importantly, we gave the opportunity of employment to a growing number of homeless people. We now employ 84 homeless apprentices, of whom over 60% have been with us for more than six months.”
The group also appointed Anders Dahlvig, a former president of Ikea, as a non-executive director.
